In the event you’re a scholar mortgage borrower whose mortgage is being serviced by Navient, you will have heard the corporate goes to be transferring its loans to a different firm. What does that imply for you?
There’s a lot occurring behind the scenes, however the excellent news is the impression on try to be minimal. However you need to nonetheless know what’s occurring.
Beneath, we’ve received a breakdown of what’s altering and what it’s essential know.
1. What does my mortgage servicer do?
It may appear complicated, however the scholar mortgage servicer is not the identical as your lender. The lending firm really ponies up the money on your mortgage. The servicer handles administrative processes, like preserving observe of your funds and determining should you’re eligible for any scholar mortgage forgiveness packages. The lender is assigned by the U.S. Dept. of Training whenever you take out the mortgage.
2. What’s altering?
Navient requested to finish their contract to service federal scholar loans this yr. The contract will run till December 2023, however the corporate is already transferring its loans to a brand new firm — Aidvantage, which is the mortgage servicing division of an organization known as Maximus.
You will have already heard from Navient (or Aidvantage) that your mortgage is being transferred. In the event you haven’t, you most likely will someday within the subsequent few months.
3. What does this imply for me?
The excellent news is that the switch shouldn’t have a lot impression on you in any respect.
Positive, there will probably be some adjustments, together with getting mail from Aidvantage as an alternative of Navient. What gained’t change: your cost plan, rate of interest, month-to-month cost, and so on.
There may be one factor you need to do: Contact Navient now (or Aidvantage in case your mortgage was already transferred) to make sure they’ve the appropriate contact information for you — not simply your mailing deal with but in addition your electronic mail and cellphone quantity. If an vital discover will get despatched to the fallacious place, it might develop into a much bigger concern.
As soon as the switch has begun, it’s additionally a good suggestion to double-check your subsequent few funds are acquired and logged correctly.
4. What if Navient providers different loans of mine?
There may be one wrinkle: Aidvantage is simply getting federal scholar loans. In the event you occur to even have non-public loans or FFELP loans (older loans issued below the Federal Household Training Mortgage Program) that Navient additionally providers, they won’t be transferred.
Sadly, that additionally means you’ll have two servicers, with separate web sites, and also you’ll must make two separate funds, and so on.
5. What’s Aidvantage?
As we talked about above, Aidvantage is a mortgage servicer inside Maximus. Maximus is new to the federal scholar mortgage enterprise however has been offering providers to authorities businesses since 1975.